Italy’s budget deficit shrank in the first quarter of the year to 9% of GDP, compared to 12.8% in the corresponding period of the previous year, according to statistics agency Istat.
The narrowing of the deficit is attributed to a large increase in revenue, higher by 10.1%, which offset a 2% increase in government spending.
Italy has set a deficit target of 5.6% of RES in 2022, down from 7.2% the previous year.
Draghi’s government has a budget of more than 30 billion euros this year to cover energy bills and stimulate the economy, while avoiding raising the deficit target it set last September.
The extra spending is expected to be financed by savings from other parts of the budget and by increasing taxes on energy companies that are making huge profits thanks to higher prices.
Source: Capital
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